Snapshot
- 12-month trial culminates in financial investment from Uber
- Electric vehicle usage to be incentivised for drivers
- Uber targets an emissions-free network by 2040
Ridesharing giant Uber has announced it will invest $26 million into Australia’s electric vehicle market by incentivising its drivers to move away from internal combustion engines.
From July 1 this year, Uber will reduce the service fees of its driver-partners who drive an EV by half, dropping from 25 to 12.5 per cent for the first 2500 who either already drive a battery EV on the Uber app or are new driver-partners who use an EV.
Off the back of a 12-month trial where service fees were reduced, the company recorded over 378,000 local rides in EVs, with monthly trips increasing by just under five times over the period which came thanks to four-times the number of EV drivers signing up.
Uber believes approximately 502 tonnes of CO2 has been saved by its partners driving EVs, while also giving an extra $5500 saving on average to the hip pocket thanks to the lower service fees and fuel savings.
Now out of the trial stage, the reduced service fees will be implemented until June 30, 2025, with Uber Australia and New Zealand’s general manager of rides, Dom Taylor, saying the investment could help show the Federal Government the importance of EVs in reducing emissions.
“At Uber we believe the future of transport is shared and electric and we are committed to accelerating the adoption of electric vehicles in Australia,” said Taylor.
“This investment is about providing incentives to help driver partners make the switch to electric, and the results from the past year have been phenomenal.
“The number of driver-partners using EVs on the platform has almost quadrupled, with five times as many EV trips being taken now than before we began the initiative, equating to over 500 tonnes of C02 emissions saved.
“So we know this approach is producing results and we also know that driver partners want the program extended. We want to do our bit – we’ve listened to them and have extended this initiative for another three years.
“One electric vehicle on the Uber platform can help the equivalent of 100 riders a month get from A to B, with rideshare drivers realising three to four times greater emissions savings compared to average car owners.
“We want to work with governments, vehicle manufacturers and key stakeholders in the industry to accelerate the rate of EV adoption across Australia so that together we can create a more sustainable transport future.
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The announcement was welcomed by New South Wales Treasurer and Minister for Energy, Matt Kean, with Uber’s incentive to work alongside the State Government’s EV subsidies announced last year.
“Governments and the private sector need to work together to achieve net zero by 2050 and a key part of this is ensuring that we accelerate the use of more sustainable transport options,” said Kean.
“It’s great to see big businesses like Uber invest heavily in the industry and this initiative will help to incentivise the uptake of electric vehicles with rideshare drivers in a cost-effective way.
“NSW has a nation-leading EV strategy and our commitment to tax reform and government rebates, together with support from private companies, will lay the foundation for an EV revolution across the State.”
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Behyad Jafari from the Electric Vehicle Council believes Uber’s decision will not only get more of its drivers into EVs but also expose the general public to the zero-emissions transport solution.
“Australians understand that electric vehicles help clean the air, cut carbon emissions, and reduce our dependence on imported oil, meaning they are keen to see more on our roads,” said Jafari.
“What we know is the best way to support people going electric is to take a ride in or drive one. Once you experience the performance of an electric car, there’s no going back.
“That’s what makes Uber’s initiative so great – not only will it help drivers go electric, but it will provide riders with an opportunity to experience new sustainable innovation.”
Uber has previously announced its intentions for all the vehicles on its platform to be zero-emission by 2040, becoming a zero-emission mobility platform in Canada, Europe and the US by 2030.
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